Stronger currency hits Brazilian exporters

Published: 24 July, 2017

The recent recovery of the real, due to perceived improvements in political stability, is widening the gap further. Downstream, the real appreciation will reflect negatively on the leather exporters margins, as the international conditions leave little room for higher prices. However, the ample retreat of the raw hides prices witnessed in recent months should provide sufficient cushion for tanners to withstand the challenge. Currently, due to the holiday period in Europe, Chinese buyers are said to bolder in their downward bids, against a market that remains sluggish and not responding to seasonality with prices falling worldwide.

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